Hypothesis testing of means

Reference no: EM13110590

The Non-Profit Times conducted a random sample of 126 U.S. non-profit companies at the beginning of 2005. The results reported that the average salary of an executive director of a nonprofit was $92,411 per year with a sample standard deviation of $25,326. A research team from a competing newspaper, which was skeptical of these results, conducted a survey of its own with the same size sample of companies and obtained a mean salary of $87,566 for executive directors (with approx. the same standard deviation as the non-profit times sample).

1) Set up the appropriate null and alternative hypothesis for testing whether the original sample overestimated the average executive director annual salary.

2) Now test the competing newspaper's view that the original sample overestimated the average executive director annual salary. Use an estimation (total) error of 5 percent.

Reference no: EM13110590

Questions Cloud

Propose a rationale by which the observation : propose a rationale by which the observation of a person's brain waves might be used to help that person lower his or her blood pressure.

Write different kind of reliability and validity : Write down the difference between reliability and validity? Write down the different kind of reliability and validity. What kind of reliability and validity would you seek in assessing employee performance?

Which of the following is likely to be true : Which of the following is likely to be TRUE in the event the gene encoding the sarcoplasmic reticulum membrane Ca 2+ ATPase has a missense mutation such that the amino acid that is phosporylated on the cytosolic site is now an alanine?

Express the types of foreign judgments : Express the types of foreign judgments that will and will not be enforced in the United States. Consider the reasons for these differences.

Hypothesis testing of means : Set up the appropriate null and alternative hypothesis for testing whether the original sample overestimated the average executive director annual salary.

Compute sample variance and sample standard deviation : Compute sample mean. Assume that desirable value for this solution has been specified to be 65.0 grams per liter. Compute sample variance and sample standard deviation.

Was cisco smart or lucky with its erp implementation : Illustrate what did they do wrong? Explain how did they manage unanticipated problems? Was CISCO smart or lucky with its ERP implementation?

What types of information technology would increase product : Then review the BUSN105 scenario and discuss the technology decisions that might be appropriate. Specifically: Illustrate what types of information technology would increase production?

Test of hypothesis-testing gas mileage claims : Chrysler Corporation agrees to allow you to randomly select 40 of its new Dodge Caravans to test the highway mileage. Chrysler claims that the caravans get 28mpg on the highway.

User Account

All Pages